TOKYO (AP) – Global shares were mixed in choppy trading yesterday, as inflation worries and the war in Ukraine had investors partly optimistic while remaining cautious.
European shares were mostly higher in early trading. Benchmarks finished higher in Japan, South Korea and Australia, but declined in China.
Investors were watching South Korean trade numbers for April, which showed a trade deficit, although both imports and exports rose.
Chinese President Xi Jinping, speaking at a forum of Asian leaders, said his government supports talks to resolve international disputes and opposes the use of sanctions. Xi’s comments were China’s latest on the response to Russia’s invasion of Ukraine.
Beijing has backed Moscow, refusing to call the conflict an invasion and saying Russia was provoked by NATO’s expansion. What central banks may indicate on interest rates and inflation was also of concern, analysts said.
“Market focus will remain on inflation and the Ukraine-Russia situation ” ahead of a IMF panel discussion with United States (US) Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde, said Lavanya Venkateswaran of Mizuho Bank in Singapore.
France’s CAC 40 gained 1.5 per cent in early trading to 6,727.22, while Germany’s DAX added 1.1 per cent to 14,516.80. Britain’s FTSE 100 inched down less than 0.1 per cent to 7,625.70.
US shares were set to drift higher with Dow futures adding 0.6 per cent to 35,288.00. S&P 500 futures added 0.8 per cent to 4,490.50.
Japan’s benchmark Nikkei 225 jumped 1.2 per cent to finish at 27,553.06. Australia’s S&P/ASX 200 added 0.3 per cent to 7,592.80. South Korea’s Kospi surged 0.4 per cent to 2,728.21. Hong Kong’s Hang Seng slipped 1.3 per cent to 20,682.22, while the Shanghai Composite fell 2.3 per cent to 3,079.81.
Investors continue focussing on the latest round of corporate earnings as they try to determine how companies are dealing with rising inflation and cost pressures. Inflation has been pressuring a wide range of industries and increasingly squeezing consumers.
New Zealand’s inflation rate hit a 30-year high of 6.9 per cent, driven by housing and gas.
Statistics New Zealand reported that the cost of building new homes was up 18 per cent compared to a year ago, while gas prices were up 32 per cent.
